When Eric's boss retires, Amanda convinces Ned to speak in favour of Eric with their boss. As a result, Eric gets the job, but only to have Ned trying to coerce him into some budget gymnastics.

Amanda thinks there are too many cooks in the muffin shop's kitchen, so she walks out on Ned but returns after he promises to remain a silent partner.

Ned enjoys a good relationship with his client, gay fashion designer Brent Barrow, who invites the Dorseys and the Moyers to his restaurant and takes Stacey and Amanda shopping at his warehouse. While helping Stacey put away her new clothes, he notices that she and Ned sleep in separate bedrooms. Stacey tells them that they have an arrangement. Brent says he understands but wrongly assumes she means Ned is gay. Later Eric and Ned arrive at Brent's Mardi Gras party before their wives and notice that only men are in attendance. Ned is eager to correct any misunderstanding with Brent and he tells him that he's straight. Brent assumes Ned is in denial about his sexuality and is ready to quit doing business with him, so Ned now tries to tell him that he is gay after all and in love with Eric. By the time Stacey and Amanda arrive at the party, Ned and Eric have done such a bad job of acting gay that Brent is sure that Ned is truly straight.

Despite pain from a temperamental gall bladder, Ned refuses to be hospitalised. That is until his pain leads him to ruin Howard's birthday party.

Ned finally goes too far with Eric, and a melt-down fight may spell the end of their long friendship.

After a series of fights, Amanda unknowingly convinces Stacey to move out of Ned's house. As she returns to her parents, both she and Ned find themselves receiving the unexpected advice from the Colberts.

Ned is forced to work with Bobby Van Lowe, a hot and young actor that has to make some PSA's. When he comments he is looking for an apartment, Ned recommends Amanda, but finds himself in the middle of trouble when Bobby makes a pass at Amanda.

After throwing Stacey out, Ned goes nuts turning her room into a game room. Stacey moves in with Alex and she gets a lawyer who tells Ned that Stacey is legally entitled to her room. After an incident with Ned, Alex decides to break up Stacey. She then goes back and Ned doesn't welcome her with open arms.

With the divorce looming, Stacey is looking for an apartment. Diana offers Stacey a job as dogs body, then accuses Ned of having feelings for Stacey.

Amanda finally has a competent staff member: super efficient and cheerful high school senior Amy. Things take an ugly turn when the teenager invites Ned to attend a street festival with her, and he shows up with another woman.

Ned, Stacey, Eric, and Amanda visit the Colberts for a Thanksgiving Day diner. However, a snow storm and other mishaps leads them into a series of family disagreements and disappointments.

Ned gives Stacey some illegal help to buy a new bed, by bribing the salesman. However, Stacey finds herself unable to sleep in it due to the guilt for Ned's actions.

Stacey skips Ned's New Year's Eve party to have a date with a friend, which eventually bothers Ned.

When Ned's agency hires Clay, a young and smart executive, to work with him, Ned finds himself worried that he might be trying to take his place.

Stacey leads a revolt at Skyward Magazine when her editor insists she turn her exposition piece on polluted lakes into a fluffy nature story. Diana flies to LA and Ned starts obsessing.

To give the impression of a real marriage at a party for his work colleagues, Ned constructs a fictitious history of his relationship with Stacey.

After accidentally meeting a handsome British guy, Stacey starts dating him. When she tries to tell him about her fake marriage with Ned, he gets the impression that they're having a real affair.

When Stacey's finances take a dive into the worst, Ned offers to help her.

In order to land Stacey a steady job, Ned starts dating a publishing executive only to realise she is a sex-crazed nymphomaniac.

Ned learns that his girlfriend is seeing someone else.

Stacey realises that Ned's getting too close to her parents and decides to forbid him from spending time with them.

When Amanda stumbles with Sam, a friend of her, she introduces him to Ned and Stacey. After knowing about their arrangement, both Ned and Stacey find themselves fighting for Sam's attention as a "buddy" and as a "boyfriend".

Ned is bound to sleep with a powerful and sexy client. However, Stacey objects arguing the humiliation it poses with the clients he wants her to impress.

Stacey meets with an old high school rival and tries to impress her with her relationship with Ned. However, she ends up seducing Ned afterwards.

Ned and Stacey agree to find a date for each other. Although Stacey's choice ends up being disastrous for Ned, she falls in love with Alex, a friend of Ned. However, her new romance ends up jeopardising Ned's career and their marriage arrangement.